Mumbai’s state Goods and Services Tax (GST) department has directed HDFC Bank and ICICI Bank to provisionally attach the bank accounts of coworking space provider Awfis for allegedly claiming excess input tax credit (ITC) amounting to Rs 4.42 crore for October 2024.

The joint state tax commissioner issued orders for the attachment, citing excess ITC claims. However, Awfis clarified that the amount was initially claimed but later reversed in its self-declared summary GST return filed each month. The company explained that the tax credit was reclaimed in October following a Supreme Court ruling favouring Safari Retreats, which allowed ITC claims on construction costs for rental properties.

This ruling was overturned in January 2025 due to amendments in the CGST Act, which led Awfis to reverse its ITC claims. The situation is now under scrutiny as the company seeks to resolve the matter with the authorities.